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<br /> A3. Council Discussion of Mobile Horne Rent Stabilization in Redwood City <br /> to determine whether or not to direct staff to submit the draft ordinance <br /> regarding mobile home rent stabilization in Redwood City to Council for its <br /> revision andlor adoption. <br /> Mayor Buchan provided a summary of events that led to the the subject <br /> discussion, and advised that the Council was conducting a study session and <br /> not a public hearing. <br /> Councilwoman Steinfeld referred to her January 12, 1993 report to Council, <br /> described the successful long term lease program in Redwood City mobile <br /> home parks, and offered information regarding the excessive costs, <br /> litigation and unfair results of vacancy control caused by rent control <br /> ordinances. <br /> Councilman Claire presented a report with overhead projections of the <br /> financial earnings of a typical mobile home park, this one in Fresno, and <br /> demonstrating its healthy financial condition with an average annual % ROI <br /> of 27.80%. Councilman Claire stated there was some confusion caused by the <br /> differing opinions of the two previous consultants, and he offered this <br /> third financial description to help clarify the financial position of park <br /> owners. Councilman Claire displayed a graph showing how mobile home rents <br /> in Redwood City have followed the cost of living since long term leases <br /> have taken effect, and explained how previous Councils adopted zoning laws <br /> that in effect restricted mobile home park development, which contributed <br /> to scarcity of coach space. Councilman Claire voiced his concern that <br /> after the current leases expire there will be escalating rents similar to <br /> what occurred before 1984, and the Council could face the same situation <br /> two years from now as it did then. Councilman Claire stated he was <br /> convinced that the motivating factor behind establishing long term leases <br /> at that time was the Council's consideration of a rent control ordinance. <br /> Councilman Claire advised that if real, solid negotiations between park <br /> owners and residents, took place, he would support that process and not the <br /> draft ordinance. <br /> Councilman Greenalch advised he believed long term leases were better <br /> mechanisms to provide fair rent increases to both park owners and residents <br /> than the draft ordinance, and advised that the draft ordinance would leave <br /> everyone in the same situation as existed in 1984. Councilman Greenalch <br /> stated it was important to move from the status quo, and addressed the <br /> subjects of equity and affordable housing, stating these issues must be <br /> addressed fully and in a new and creative way. <br /> Councilwoman La Berge acknowledged Councilman Claire's concerns and reasons <br /> a rent control stabilization ordinance might be needed, but stated that the <br /> Council's job was to provide incentives for groups to work together and she <br /> hoped the issues could be resolved without legislation. <br /> Councilwoman Gasparini agreed with Councilwoman La Berge and spoke in <br /> support of bringing the groups together to develop long term leases that <br /> would satisfy everyone. <br /> Special Meeting Minutes <br /> January 25, 1993 MINUTE BOOK NO. 51 <br /> Page 3 Page No. 303 <br /> . --.. 1- -.- - <br />